Did you know that there are multiple types of cashback credit cards? They are broken down into three classes: Flat-rate, bonus category and tiered. The best cashback credit cards are the ones that fit your travel and personal finance agenda the most.
The most common type of cashback credit card is best utilized when traveling; a cashback credit card that is triggered by hotel and airline expenses will be best suited for helping the family. Here are more tips and rankings for the best credit cards offering cashback in 2019.
What Credit Card Gives the Most Cash Back?
NerdWallet.com routinely ranks the best cashback credit cards almost monthly. In their opt-in bonus category rankings, they put Discover’s Discover it Cash Back as the cream of the crop:
“It’s pretty hard to beat 5% cashback on up to $1,500 in spending per quarter (though you have to remember to activate the bonus categories), and the Discover it® Cash Back has historically offered bonus categories where many of us spend a lot. With a $0 annual fee, this card does well as either an everyday card or a backup.”
Other picks in this category include: Chase Freedom Unlimited® and Capital One® Quicksilver® Cash Rewards
Is 1% Cashback Good?
In cashback terms, 1% is the lowest offered, and it is usually not the premier perk of the credit company’s offerings. Even 5%, which is typically the highest offered, comes with some strings attached.
According to Reader’s Digest: “Credit card companies lure you in with enticing offers of free money, but reading the fine print reveals that many of them offer cashback only for specific purchases, such as groceries or drugstore items. Moreover, some cards set limits on the maximum amount for which they’ll return a percentage. Getting cashback for purchases of up to $1,500 may sound like a lot, but do the math and you’ll find that the returns max out at $20 per month.”
A word of caution: Don’t get addicted to earning cashback on credit cards for the purpose of travel, as you travel rarely compared to daily expenses, and most of the time you are generating more debt than you are accumulating income. Only use your credit cards in a situation that normally calls for them, such as traveling internationally or spending minimally between paychecks.
What Kind of Credit Card Can I Get with a 700 Credit Score?
If you have a 700 credit score, you are doing just fine. Most places where you would be looking to rent a room or apartment, for example, only require in the neighborhood of a 620 or so. To buy a car, a minimum of 640 is usually the norm. Credit cards are no different – you can gain a modest interest rate with a 700 credit score, and there are several options to choose from that offer different bonuses and perks, including cashback. You will, however, be starting out at the minimal cashback level while you work on improving your credit score.
WalletHub recommends the Citi Double Cash®, where you can receive 1% cashback on all purchases, with another 1% cashback when you pay them off. Intro APR of 0% for 18 months* on balance transfers (3% transfer fee). 3% foreign transaction fee. $0* annual fee.
What is the Best Cash Back Credit Card with No Annual Fee?
The Discover it® Cash Back card earns his marks here again from CreditCards.com when discussing no annual fees. The cashback can be up to 5% without the need for a high credit score because you must shop at certain places for groceries and commodities in order to earn that percentage. Here are more details about the card from CreditCards.com, including the ability to use the cashback function on Amazon.com.
- Intro Offer: Discover will match all the cashback you’ve earned at the end of your first year, automatically. There’s no signing up. And no limit to how much is matched.
- Earn 5% cashback at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate.
- Plus, earn unlimited 1% cashback on all other purchases – automatically.
- Redeem cash back any amount, any time. Rewards never expire.
- Use your rewards at Amazon.com checkout.
- Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
- No annual fee.
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